Consider the recent performance of the Closed Fund, a closed-end fund devoted to finding undervalued, thinly traded stocks: Period NAV Premium/Discount 0. $10.45 0.0% 1. 11.50 4.9 2. 9.55 +1.6 3. 10,20 -3.3 4. 12.25 7.1 Here, price premiums and discounts are indicated by pluses and minuses, respectively, and Period 0 represents Closed Fund's initiation date. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any. a. Calculate the average return (geometric average) per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4. b. What was the average periodic growth rate in NAV over that same period?
Consider the recent performance of the Closed Fund, a closed-end fund devoted to finding undervalued, thinly traded stocks: Period NAV Premium/Discount 0. $10.45 0.0% 1. 11.50 4.9 2. 9.55 +1.6 3. 10,20 -3.3 4. 12.25 7.1 Here, price premiums and discounts are indicated by pluses and minuses, respectively, and Period 0 represents Closed Fund's initiation date. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any. a. Calculate the average return (geometric average) per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4. b. What was the average periodic growth rate in NAV over that same period?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Consider the recent performance of the Closed Fund, a closed-end fund devoted to finding undervalued, thinly traded stocks:
Period
NAV
Premium/Discount
$10.45
0.0%
11.50
4.9
2.
9.55
+1.6
3.
10.20
-3.3
4.
12.25
-7.1
Here, price premiums and discounts are indicated by pluses and minuses, respectively, and Period O represents Closed Fund's initiation date. Do not
round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.
a. Calculate the average return (geometric average) per period for an investor who bought 100 shares of the Closed Fund at the initiation and
then sold her position at the end of Period 4.
b. What was the average periodic growth rate in NAV over that same period?
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